Enrique Abeyta:

Oracle Sued by Bondholders Over Losses Tied to AI Buildout

Oracle was sued on Wednesday by bondholders who say they suffered losses because the company chaired by billionaire Larry Ellison failed to disclose it needed to sell significant additional debt to build out its artificial intelligence infrastructure.

The proposed class action was filed in a New York state court in Manhattan on behalf of investors who bought $18 billion of notes and bonds that Oracle issued on Sept. 25, two weeks after Oracle announced a $300 billion, five-year contract to supply OpenAI with computing power.

These investors said they were blindsided when Oracle returned to the capital markets seven weeks later to obtain $38 billion of loans to fund two data centers to support the OpenAI agreement.

“The bond market’s reaction to Oracle’s additional debt was swift and bracing,” as prices fell and yields rose on Oracle’s debt because investors perceived higher credit risk, the bondholders said.

According to the complaint, Oracle, Ellison, former Chief Executive Safra Catz, Chief Accounting Officer Maria Smith, and the company’s underwriters are strictly liable under federal securities laws for false and misleading statements in offering documents for the $18 billion debt sale. The bondholders are seeking unspecified damages.

⇒ Read More Here

Ray Blanco:

China Blocks Nvidia H200 AI Chips From Entering Country, Sources Say

Nvidia Corp. faces fresh uncertainty in China after customs authorities reportedly told agents that its H200 artificial intelligence chips are not permitted for import, according to multiple sources cited by Reuters.

Officials also met with Chinese technology companies this week, instructing them to avoid purchasing H200 units unless absolutely necessary – a message described by one source as effectively a ban for now.

The move comes just days after the U.S. formally approved limited exports of the H200 to China, with conditions capping shipments at 50% of total U.S. sales. Beijing has not clarified whether the restriction is temporary or a formal ban.

The H200, Nvidia's second most powerful AI processor, offers roughly six times the performance of the earlier H20 model and is critical to advanced AI training. Chinese firms had reportedly ordered more than 2 million chips, far exceeding Nvidia's available inventory of about 700,000 units.

⇒ Read More Here

Davis Wilson:

Crypto Scammers and Fraudsters Stole a Record $17 Billion Last Year

Cryptocurrency scammers stole an all-time high of $17 billion last year, crypto analytics firm Chainalysis estimated in a Tuesday report. The figure is a more than 21% increase from the $14 billion stolen in 2024.

Scams are becoming more sophisticated as impersonations of legitimate organizations grow more popular and use of artificial intelligence improves the effectiveness of scams.

Impersonation scams, such as an actor posing as a support representative for the largest U.S.-based exchange Coinbase, have climbed over 1,400% compared to 2024 with the average payment amount made in this cluster jumping more than 600%. 

Meanwhile, scams using deepfake technology and artificial intelligence not only have increased transaction volume suggesting broader victim reach, but also generated higher returns for the scammers.

⇒ Read More Here